7 Last-Minute IRPF Strategies to Slash Your 2025 Spanish Tax Bill
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That sinking feeling you get in mid-November? It’s not just the dark evenings. It’s the sound of the 2025 tax year slamming shut.
You've worked hard all year as an expat or autónomo in Spain, and now you’re looking at your earnings and dreading the IRPF bill (Modelo 100) that will hit you next April. I know exactly how you feel. It’s far too easy to overpay by thousands simply because you miss a few key deadlines that all fall on December 31st.
But it doesn't have to be that way. You can take specific, legal actions right now to significantly reduce that final tax bill. Below are the 7 most powerful, high-impact strategies we use with our own clients—from the most under-used tax credit in Spain to simple timing tricks.
1. The Startup Investment: A 50% Tax Credit
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Type: Tax Credit (Not a deduction)
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Impact: High
This is, without a doubt, the most powerful and overlooked incentive in the Spanish tax system. We're not talking about a deduction from your income; we're talking about a direct 50% credit taken directly off your final tax bill.
Under the "Startup Law" rules (Ley 14/2013), you can invest up to €100,000 in a new or recent company and get €50,000 back.
Real World Example: A software executive client invested €20,000 in a local tech startup last December. He instantly reduced his final tax liability by €10,000.
Note: The company must be new, and you cannot hold >40% equity.
2. Maximize Your Pension (The "Autónomo Hack")
Everyone knows about the standard individual pension plan deduction. It's fine, but it's not where the real savings are for entrepreneurs. Most people leave thousands on the table by stopping at the personal limit.
Your Contribution Limits:
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Standard Individual: €1,500 deductible.
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Autónomo (Self-Employed): You can contribute to a Simplified Employment Pension Plan (PPES), lifting your total limit to €5,750 (€1,500 + €4,250).
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SL Owners: You can make employer contributions (contribuciones empresariales) for an additional €8,500.
3. Accelerate Expenses & Delay Income
This gives you direct control over your taxable profit (Income minus Expenses). Use the calendar to your advantage:
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Accelerate Expenses: Need a new laptop, office furniture, or to pre-pay your 2026 software subscriptions? Buy them before December 31st. They become a 2025 expense, lowering your profit immediately.
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Delay Income: Have a big project invoice to send? If your contract allows, wait and send the factura on January 2nd, 2026. That income now legally falls into the next tax year, deferring the tax liability.
4. The Final Call: Energy Efficiency Deductions
Status: URGENT (Expires Dec 31, 2025)
This is your last chance. The popular deductions for making your home more energy-efficient expire at the end of this year. You can get a deduction of 20%, 40%, or even 60% on works that improve your home's energy rating.
⚠️ The Catch: You MUST have an official energy certificate from before the renovation and another one after. You cannot just show receipts for new windows. This is the #1 reason Hacienda rejects these claims.
5. Harvest Your Losses
Status: URGENT (2021 Losses Expire Now)
Did you sell stocks, funds, or crypto for a gain in 2025? It's time to "tax-loss harvest" by selling other investments currently at a loss to cancel out the gains.
Why is this urgent? In Spain, you can only carry forward capital losses for four years. Any significant losses you crystalized back in 2021 will expire forever on December 31, 2025. Use them or lose them.
6. The 80% Donation "Easy Win"
The Spanish government provides an 80% deduction on the first €250 you donate to a qualifying Spanish NGO (covered by Ley 49/2002).
The Math:
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You donate: €250
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Tax deduction: €200
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Real cost to you: €50
It is an incredibly efficient way to support a cause you care about while lowering your bill.
7. The Beckham Law "Health Check"
If you are on the special expat regime (Beckham Law), you pay a flat 24% tax, and almost none of the deductions above apply to you. Your pension, donation, and energy credits are irrelevant. Instead, focus on:
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New Arrivals: Did you move here in 2025? You only have 6 months from your Social Security start date to apply. If that window closes, it is an irreversible, expensive mistake.
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Veterans: Is your 6-year term ending? If it ends this year, you must plan your transition to the standard IRPF system to avoid a massive tax shock in 2026.
Don't Wait Until April
Your final IRPF tax bill for 2025 is not set in stone. It is a number you can actively and legally influence right now. Whether it's making a strategic investment, timing an invoice, or cashing in those 2021 losses, the key is to act before the December 31st deadline.
Feeling overwhelmed is normal—Spanish tax is complex. This is exactly why we built InnoTaxes. Our platform is designed to handle these exact scenarios for expats, entrepreneurs, and freelancers in Spain.